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June 4, 2004
Does Slow Broadband Growth Hinder The Media Economy?

A lot of what media outlets are doing these days is focused on bringing content to the Internet, or tying print/broadcast content to related information online. In fact, many more sites that have broadband and dial-up options for content have begun to diverge a little further with what is offered to broadband visitors. I would expect with the ability to create better video quality and transmission capabilities, more and more things such as video blogging will become mainstream over the next 1-2 years.

One of the keys to this growth is the expansion of broadband usage, obviously. There has been an incredible amount of cable modem/DSL subscribership over the last year or so - worldwide, not just in the United States - which is great. Unfortunately, the slowdown in broadband rollout (yes, there is a slowdown in some areas) might hinder the ability to keep the United States in a prime position when it comes to the broadband market. Carol Wilson at Broadband Edge reports this week on a new book, entitled "The Broadband Problem, Anatomy of a Market Failure and a Policy Dilemma," by Charles Ferguson that makes some pretty heavy statements about a need for better competition in the broadband rollout in this country. Ferguson believes that if our current deployment of broadband continues at the pace it is at (he quotes us at being 20th fastest worldwide), other technology will not be able to continue as it is currently moving.

The article spins into a need for political change at the highest level and within the FCC - noting that the administration should keep this concern in mind as they create/change legislation regarding telecommunications and Internet usage. While Ferguson doesn't seem optimistic that the Bush administration would make any solid adjustments that would help, I do specifically remember President Bush stating something about broadband growth in this country, wanting to have it for every man, woman, and child.

The interesting thing here is that the ability to publish/create new content seems to exist already, but the ability to convey this content could turn out to be a problem. It's not as simple as the creation of the printing press or telephone here - the "medium" exists (don't come yelling at me about how the Internet isn't a "medium") already - the ability to receive the information is hindered. It's almost like the newspaper will be too wide to put the rubber band around, so the newspaper delivery person can only carry ten newspapers at once, instead of thirty.

So, before I have deja vu back to my 1200 baud modem days, let's see what the rest of you have to say about this topic.

Posted by Tom at June 4, 2004 2:13 PM | TrackBack | IM This

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